The Emergence of New Successful Export Activities in Argentina: Self-Discovery, Knowledge Niches, or Barriers to Riches?

Abstract

This paper examines the emergence of three new successful export activities in Argentina: biotechnology applied to human health, blueberries and chocolate confections. The main interest lies in ascertaining why these sectors/products were targeted, on which previously accumulated capabilities they were built upon, and what type of hurdles they faced and how they were overcome. In the absence of government support for discovery, these new exports emerged because the pioneers could introduce permanent or dynamic barriers to entry to compensate for the knowledge externalities they generated. When they could only introduce temporary barriers to entry, laissez faire investment in experimentation was suboptimally small. These new exports emerged in sectors where there were entrepreneurs with superior planning and networking skills and/or there were larger firms that could self-provide the required public goods and solve coordination failures by themselves.